Answer to Question #156984 in Macroeconomics for EMMANUEL DOKYI

Question

evaluate the effect of changes in the macro-economic business environment on a specific business organisation you have chosen. This may be an organisation from your own experience or one you have researched.

Answer 1

Lots of factors influence business in economic terms when it comes to change in the interest rate, unemployment, or inflation. When the issue of COVID-19 arises with lockdown coming into existence made a hell of the economic situation. The business-related to the education industry where a private training center was set up for higher secondary students. The lockdown ceased the revenue, students stopped coming for class but the rent and other maintenance charges had to be paid. This expense had to be met without any generation of revenue due to lockdown. This a global issue currently running and the economy trying to resume back to normal conditions.

Had to reduce expenses by the termination of faculties and hired contract staff so obligation was reduced.

Rent was inevitable so had to bear it.

Students were connected with an online platform and with classes being conducted a small revenue started flowing in.

The exchange rates also affect in terms of it is a listed company, luckily since my study center is small one didn't affect much to those that are listed.